The Co-operative Union of Canada (organised 1909) and its objects.

II l[

The J

Co-operative Union

[] of Canada*

(Organised 1909)

\

(Affiliated with the International Co-operative Alliance)

The National Federation of I
Canadian Co-operative
Societies.

with affiliated Societies in Alberta, British Columbia, Manitoba,
Nova Scotia, Ontario and Quebec.

United Board, 1918.

(The Dominion Executive of the Union)

PRESIDENT— SAMUEL CARTER, M, P. P.

President, The Guelph Co-operative Association, Limited.
Guelph, Ont.

GEO. L. BUSH, Vice-President, Guelph Co-operative Associ-
ation, Limited, Guelph, Ont.

W. C. GOOD, B. A. President, The Brant Farmers Co-operative
Society, Limited. Paris, Ont.

THOS PATTERSON, President, The Industrial Co-operative
Society of Hamilton, Limited, Hamilton, Ont.

WM. SMITH, President, The Gait Co-operative Society, Limited

Gait, Ont.

GENERAL SECRETARY-TREASURER
GEORGE KEEN, - 115 Brock Street, Bran tford, Ont.

D

□c

Organisation Department.

Organisation Committee.

THOS. PATTERSON, (Chairman)
President, The Industrial Co-operative Society of Hamilton, Ltd.

GEORGE ROEBUCK, (Secretary-Treasurer.)
Secretary, The Industrial Co-operative Society of Hamilton,

Limited.

SAMUEL CARTER, M. P. P. President The Guelph Co-oper-

tive Association, Limited.

W. C. GOOD, B. A., President, The Brant Farmers' Co-oper-
tive Society, Limited, Paris, Ont.

WIT LIAM SMITH, President, The Gait Co-operative Associ-
ation, Limited

THE ORGANISATION DEPARTMENT undertakes the or-
ganisation of Co-operative Store Societies in Industrial Centres
and Rural Districts, Co-operative Warehouse Societies for Farm
Supplies, Co-operative Marketing Societies and Co-operative
Productive Societies. Lectures, Propaganda addresses and
advice given on co-operative subjects.

"The Canadian Co-operator"

Brantford, Ontario.

Published by The Co-operative Union of Canada is the organ of
the movement in the Dominion. Supplied in bulk to affiliated
societies at cost price. Published monthly. Individual Subscrip-
tions 50c. per annum.

THE CO-OPERATIVE UNION OF CANADA

AND ITS OBJECTS

The Co-operative Union of Canada was organised on the- 6th March, 1909,
at the first Congress of the Canadian Co-operative societies held at Ham-
ilton, Ontario. Every society in Canada, of whatever nature or kind is-,
eligible for admission if it is a bona fide "co-operative." As evidence of bona fides,
it is necessary to establish: (a) that the society applying for affiliation was pri-
marily organised for public benefit, and not to gratify private or personal ambi-
tions; (b) that it is democratic in constitution, every member having only one
vote, to be exercised in person, and not by proxy, except in the case of federated,
district or provincial organisations, when control may be by some other demo-
cratic or representative method, the equitable character of which satisfies the
Union; (c) that surplus trading or operating revenues are divided on what is
known as the Rochdale Plan, or held for the common welfare of the members,
or that the society is not organised to create or to distribute a surplus; in other
words, societies must be conducted for mutual or social service and not for profit
on the capitalist system. It is the purpose of the Union to cultivate, and to affili-
ate, all types of co-operative society, including industrial and agricultural, pro-
ductive, distributive, marketing, housing, insurance and credit or banking soc-
ieties, in the belief that the same are mutually beneficial, and likely to contribute,
in some degree, to the development of the co-operative spirit among our people,
and to the ultimate achievement of a co-operative commonwealth.

Success Depends on Loyalty

Every co-operative society depends for its success upon the loyalty and co-
operation of its members. In proportion to the measure in which it enjoys such
loyalty and co-operation will success be achieved. If, therefore, loyalty and co-
operation are essential to the success of the individual society, it is equally obvious
that the welfare of the Movement generally must depend upon the loyalty and co-
operation of the individual societies in their relations with the national federation
of all the societies, the Co-operative Union of Canada.

The success of the Union must inevitably contribute to the success of the in-
dividual societies. The success of co-operative societies in European countries
is, to a great extent, attributed to the fact that the societies co-operate with each
other through their national unions for the advancement of common aims. The
comparative failure of co-operative societies on this continent must be attributed
to the isolated character of co-operative activities, and the individualistic spirit
and attitude of each society.

Hereunder, for the information of co-operative societies not affiliated with
the Union, or which may hereafter be organised, are described some of the advant-
ages which the Union offers to the individual societies affiliated with it. The
quality, however, of the service which can be given to the individual society by
the Union must, of necessity, depend upon the unity, strength and influence of
the affiliated societies, and the extent of the financial resources they are in a pos-
ition to place at the disposal of the Union. The advantages may be enumerated
as follows:

All for Each

1. The Union provides the means whereby co-operative societies may put
at the service of each the united intelligence and experience of all. Many soc-
ieties, in the past, organised in good faith, have failed because the management
committees elected, having had no practical experience of co-operative busi-
ness, have not had recourse to the experience of well organised and established
societies. Consequently they have repeated the mistakes which have led to dis-
aster on the part of societies which have preceded them elsewhere. Successful
societies, through the federation of the Canadian co-operative societies in a na-
tional union, have also the means provided for them whereby they may avoid
unwise policies, losses of time and money, and of the confidence of the members,
in the establishment of new departments, or the inauguration of additional co-
operative enterprises, by securing in advance the advice, and getting the benefit
of the experience and judgment, of other affiliated societies already successfully
operating aiong similar lines.

Provides Means of Conference

2. The Union provides the means of conference by the individual societies
on economic, social or educational questions of mutual interest and advantage.
Affiliated societies as they grow in number and strength can federate in produc-
tive and wholesale organisations and, in other ways, act collectively for the com-
mon welfare. Isolated societies, that is to say those which are not associated with
a national co-operative union, have not such opportunities. When it is remem-
bered that the economies to be effected by co-operation are principally dependent
upon the magnitude of the business operations, and the extent to which competi-
tion can be reduced, it will be readily seen that unity of action on the part of all
societies materially contributes to the success of each. Economies to be effected
by retail distribution are limited. The full benefit of co-operative effort cannot
be enjoyed until the aggregate retail demand of the affiliated societies for mer-
chandise is sufficiently great to justify the societies combining their resources in
trade and capital to establish wholesale warehouses, factories and mills. A nec-
essary preliminary to such organisations is the development of a strong national
union.

Federated Capitalism Opposes Co-operation

3. Capitalism, productive, distributive and financial, is strongly opposed to
any development of the Co-operative Movement in Canada for the reason that,
in proportion to the growth of the Movement, co-operation will be substituted
for capitalism, and the unearned profits of capitalists will be reduced. Capitalism
is highly organised and federated, and will have little difficulty in obstructing
co-operative development if co-operative societies persist in a policy of isolation.
It is an old military axiom that, given the opportunity, an inferior army can
defeat a much larger one, if the latter is attacked in detail. The fact can be
applied with equal force to the position of co-operative societies in regard to their
capitalistic opponents.

Union Assists New Societies.

4. Many co-operative societies have hitherto been organised under con-
ditions and subject to policies which made success impossible, even before
business operations were commenced. The Union puts at the service of each
society in process of organisation the accumulated experience it has gained
throughout the Dominion in all the years it has been in existence. Every co-
operative society which is launched and fails injures, to some extent, the prestige,

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and the credit, of societies which have become well established. Every society
which is launched on a permanently successful basis strengthens the prestige and
enhances the credit of all sbcieties, besides increasing the influence and the repu-
tation of the Movement generally. It is, therefore, to the advantage of every
society that some means should be provided to prevent new societies making dis-
astrous mistakes.

Defensive Alliance Against Boycott

5. There is a tendency on the part of producing and wholesale houses to
discourage trading relations with co-operative societies. In some cases the same
are absolutely declined. Unless the difficulty is met by federated co-operative
action, the same will increase as the Movement grows in power. It did so in
Europe. The menace can only be removed by the strength of the defensive alli-
ance which exists between co-operative tocieties in the Co-operative Union of
Canada. On several occasions, in recent years, the Union has intervened with
producing and wholesale houses, on behalf of affiliated societies; houses which
refused to supply goods to such societies, and would have continued to refuse
but for the representations made by the Union. The Union has reason to know
its success in this respect has been assisted by the fact that it sometimes happens
the boycotting wholesale house has at least one big, satisfactory and profitable
account with a co-operative society which it would not like to lose, but knows that
as such society is affiliated with the Union it will probably do so if it continues to
decline business from a small affiliated society whose orders are not of so much
importance. As the number of societies in affiliation with the Union increases,
and their trade transactions become of greater magnitude, the Union will be able
to exercise much more influence in protecting the affiliated societies from injust-
ice at the hands of producing and wholesale houses.

Federal Legislation Needed.,

6. The Movement in Canada needs federal legislation to provide cheap,
simple and effective facilities for the incorporation of societies, and the develop-
ment of co-operation throughout the country. At present co-operative societies
have to rely for incorporation upon provincial statutes, some of which were de-
signed to suit the needs of capitalist corporations only and others, .expressly of a-<
co-operative character, were drafted by people of little or no co-operative ex-
perience, and who were not themselves really co-operative in sentiment. Efforts
in the past to procure such federal legislation have failed because co-operative
societies have been few, weak and isolated and, therefore, without influence, while
the competitive interests opposed to co-operative legislation have been numerous,
strong and federated.

Union Protection Against Fraud

7. Many co-operative societies — so called — have brought loss to their mem-
bers and disgrace to the Movement because they were 'organised by promoters
for their own selfish advantage instead of by the people for social service. Pro-
moters in Canada have exploited the remarkable success of the Co-operative
Movement in Europe to secure, under the guise of a co-operative society, and
really to operate for their personal advantage, the savings and the trade of the
people in business speculations which never had any chance of being justified
and which, even if they had proved to be successful, would have operated to the
advantage of the promoters, instead of the share-holding proprietors. It is nec-
essary that genuine co-operative societies should be protected from the prejudicial
influence of such fraudulent promotions by exposing them whenever they are

attempted. The people of Canada who, for the greater part, are altogether ig-
norant of co-operative principles and methods, are also entitled to be protected
from spurious organisations intended to deceive and to defraud them. Affiliation
with the Co-operative Union of Canada provides the public with a guarantee that
the bona fides of any organisation claiming to be co-operative have been in-
vestigated, and that its constitution satisfies the requirements of the affiliated
societies.

Education and Propaganda

8. The last advantage to be urged on behalf of the Union is the greatest
and most important. It is one of its functions to propagate throughout Canada,
and particularly in districts which are not at present co-operatively organised, a
knowledge of true co-operative principles, and to cultivate an appreciation of
co-operative ethics, and the practice by the people of co-operative views of life
and duty. While such educational facilities serve our people as a whole, they
are absolutely essential to members of co-operative societies, if they are to become
co-operators, in the true sense, and their organisations are to gr> w in success and
social usefulness. A co-operative society composed of members having no know-
ledge of co-operative principles is economically, socially and morally about as
efficient as a Christian Church would be if it were composed exclusively of people
who knew nothing whatever of Christianity, but joined solely because they thought
there was money to be made in becoming members. A co-operative society com-
posed of co-operators people whose enthusiasm is born of knowledge, and of

genuine attachment to co-operative principles may sometimes make mistakes

in business policy, in management, and in financing its undertaking, but it will,
sooner or later, inevitably overcome them. A society composed of people ignor-
ant of co-operative principles never does. Even though, through a mutuality of
selfish interest, or because of industrial solidarity, a society is for some years an
economic success, it must eventually pass out of existence, or to capitalistic ow-
nership, unless there is a guarantee of the continuity of the true co-operative
spirit on the part of a considerable portion of its members.

AH Genuine Societies Eligible.

The Union is prepared to receive as members all co-operative organisations
in Canada which comply with the requirements outlined in the first paragraph.
The terms of admission and membership are defined in rule 9. While the basis
of contributions for the financial support of the Union contemplates distributive
societies only, the Union is willing to agree upon a fixed annual assessment, or
some other satisfactory method of computation, in the case of societies of other
types, and to which the rule cannot be applied.

It will be seen that provision is made in the rules for the organisation of sec-
tions of the Union in provincial groups. With the growth of the Movement it will
be possible to organise provincial sections and also, eventually, to subdivide these
into conference districts to provide facilities for greater intensive development
and education, and local collective effort for economic and social betterment.

"The Canadian Co-operator"

The Union has, since October, 1909, published, as its monthly organ, "The
Canadian Co-operator." The International Co-operative Alliance, at its last
congress held at Glasgow, Scotland, by resolution unanimously recommended
that every individual society in each country should take sufficient copies of the
national organ of the Movement to insure each of its members getting one regu-

larly. Most of the societies affiliated with the Co-operative Union of Canada take
in bulk and distribute among their members, and use for propaganda purposes,
every month, a supply of the "Canadian Co-operator." The monthly organ in-
forms the members, committees and staffs, of each affiliated society what other soc-
ieties are doing, and also of the progress of the Movement in the Dominion. It gives
some information of co-operative thought and activities in other countries from
which lessons of value may be learnt. It is, at present, the principal means of educat-
ing the members of the Canadian co-operative societies in co-operative principles,
methods, ethics and outlook. The present practice is to charge to each society
its proportion of the cost of printing the magazine, and express or postal charges
for delivery.

While the "Canadian Co-operator" has for years past been highly regarded
by co-operative authorities at home and abroad, its enlargement and improvement
can only be effected, and its value to the Movement increased, by the extent to
which co-operative societies join and are loyal to the Union, and increase the
circulation of the magazine, and in proportion to the growth in numbers and
strength of affiliated co-operative societies in Canada.'

Requisites for Affiliation

A society desirous of becoming affiliated is required to send to the General
Secretary, The Co-operative Union of Canada, Brantford, Ontario, a copy of its
rules, and to sign the form of application provided by him. If, after enquiry and
examination of the rules or constitution he is satisfied the applying society is bona
fide, and entitled to affiliation, he will provisionally admit the same, when the
society immediately enjoys the privileges of membership. The application is,
however, submitted to the next meeting of the United Board, the executive of the
Union, for confirmation of the general secretary's action. Further information
and sample copies of the "Canadian Co-operator," and other literature issued by
the Union, can be obtained by writing- to

THE CO-OPERATIVE UNION OF CANADA,
Brantford, Ontario.

July, 1918.

1=31 !!=□

RULES OF THE CO-OPERATIVE UNION OF CANADA

Name and Objects

I . The name of the Society is The Co-Operative Union of Canada.
2. The objects of the Union are:

(a) The recognition, by affiliation with the Union, of all bona fide
co-operative associations in the Dominion of Canada, in order that the public
may be able to distinguish the same from institutions which are now, or
may hereafter be, organised with a co-operative title for purposes of per-
sonal or private advantage or profit, and so avoid the injury which would
otherwise be occasioned to the co-operative movement.

(b) The propagation in the Dominion of Canada of co-operative
principles, as above mentioned, to the end that the practice of truthfulness,
justice and economy in production and exchange may be promoted, and the
conflicting interests of capitalist, worker and purchaser may be conciliated
by an equitable division among them of the fund commonly called "profit,"
and preventing the waste of labor now caused by unregulated competition.

(c) To cultivate a spirit of mutual service by self-abnegation ex-
pressed in the co-operative motto, "Each for all and all for each," and to
promote by the same means moral, educative and refining enterprises de-
signed for the improvement of the people generally.

Meihbers and Shares

3. The Unicm shall consist of all Co-operative Associations or Societies,
Joint Stock Companies and other bodies corporate (all of which are hereinafter
included in the term "societies"), which are now, or which may be hereafter
admitted by the Union. Individuals may be elected by Congress as honorary
members thereof, but they shall have no power to vote on any question arising at
any meeting held by or under the auspices of the Union.

4. Applications for admission chall be made in writing, in such form as the
Board may prescribe from time to time, signed, by the Secretary of the Society, to
the General Secretary of the Union, who may provisionally admit the applicant, sub-
ject in all cases to approval at the next meeting of the United Board.

5. Each applicant for admission shall be deemed by such application to
accept as the principle by which all its business transactions shall be guided the
desire to promote the practice of truthfulness, justice and economy in production
and exchange.

1 . By the abolition of false dealing, either

(a) Direct by representing any article produced or sold to be other
than whatsit is known to the producer or vendor to be; or

(b) Indirect, by concealing from the purchaser any fact known to
the vendor material to be known by the purchaser to enable" Kim to judge
of the value of the article purchased.

2. By conciliating the conflicting interests of the capitalist, ths worker and
the purchaser, through the equitable division among them of the fund commonly

known as Profit..

3. By pre venting the waste of labor now caused by unregulated com-
petition.

6. No Society shall be admitted into the Union unless its management is of
representative character.

7. No Society shall be admitted into the Union which permits its members
more than one vote in the determination of any question before any meeting,
and, in the election of officers, one vote each for as many candidates as are re-
quired.

Contributions

8. A nominal entrance fee of one dollar shall be charged every Society
which is admitted to membership in the Union.

9. Every Society, so long as it remains a member of the Union, is required
to make, annually, for its support, the contribution following:

(a) If the net profit of any society, disclosed by its balance sheet for
the preceding year, does not exceed $1,000, then the sum of 10 cents for
each purchasing member.

(b) If the net profit of any Society, disclosed by its balance sheet for
the preceding year, exceeds $1,000, then the schedule shall be as follows:
Between $1,000 and $1,500, 1 5 cents; between $1,500 and $2,000, 20 cents;
over $2,000, 25 cents per purchasing member.

A purchasing member shall be understood to mean every member whose
average purchases for the previous year have been of the value of $50.00 or more.
The contribution aforesaid may be payable yearly in advance, or by such

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instalments as may be agreed upon.

The United Board may, for good cause shown to them, relieve, wholly or
in part, any Society from the operation of the foregoing clause, but such relief
may be rescinded by resolution of Congress (Rule 9 as amended at Gait Congress).

1 ®. The Union may receive from its members or other persons subscriptions
or donations in aid of its operations, but no such payment shall give to the payer
any right not expressed by the rules.

Congress Year

I [. The Congress year shall commence on the 1st day of January of each
year and end on the 3 1st day of December.

Withdrawal or Expulsion.

12. Any Society may withdraw from the Union by a notice in writing sent
to the head office, under the seal of the Society and properly attested.

13. A Society which may by the Board be deemed guilty of conduct detri-
mental to the Union, or to the movement generally, may be excluded from the
Union by the resolution of the Congress, of which due notice has been given in the
report of the United Board to Congress, and in regard to which the offending
Society has been notified not less than one month previous to the sitting of Con-
gress.

Government

14. The Union shall be governed by a general meeting herein called the
Congress, which shall be held annually, at such time and place as may be deter-
mined by the preceding Congress.

15. The Congress shall consist of

Delegates from Societies, members of the Union, who are in good
standing, or individuals who have been elected by Congress as honorary
members.

1 6. Each Society entitled to appoint delegates shall be entitled to send

(a) If the number of its members is not over 125, one delegate.

(b) If the number is over 125, one delegate for each 125, or frac-
tion thereof, for whom it has paid the annual contribution requested.

1 7. A delegate must be a member of the Society he represents.

1 8. Each delegate shall have one vote only on any question before the Con-
gress, and may not vote by proxy. Any Society, however, finding itself, through
geographical or other difficulties or reasons, unable to avail itself of the personal
attendance of the number of delegates to which it is entitled by the rules, may elect,
upon notice in writing of its intention so to do, delivered to the General Secretary
at least one day before the first meeting of each Congress, exercise its voting power
by one delegate or division amongst any number of its delegates, not exceeding
in the aggregate the number of its votes to which it is entitled.

Credentials of Delegates.

1 9. A statement of the name and postal address of each delegate appointed,
and the authority by which the appointment has been made, shall be delivered
at the head office of the Union not later than two weeks previous to the first day
of the meeting of Congress. Such statement shall be attested by the signature
of the Secretary and two members of the committee of the Society represented.

20. If a delegate appointed is unable to attend Congress, his card may be
transferred to any other person nominated by the committee of the Society by
whom the appointment was made, provided that such nomination is communicated
to the General Secretary of the Union, in writing, before the first sitting of the
Congress.

ADMINISTRATION
The United Board

2 I . The affairs of the Union shall be administered by an United Board elected
by the Congress, and consisting of such number of members as the Congress may
appoint, but no two members of the United Board shall be delegated by any one
Society.

22. The United Board, subject to any resolution of the Congress, shall

(a) Hold at least two ordinary meetings in the year and such extra-
ordinary meetings as it appoints.

(b) Control the disposal of the funds of the. Union according to rules.

(c) Determine any question as to the limits assigned to the several
sections.

(d) Have power to refer any subject to any section and to require
a report thereon.

(e) Appoint any Committee for any purpose connected with the
operation of the Union that it may think expedient.

(f) Publish or authorize the publication, in the name of the Union,
of any literature of which it may approve.

(g) Transact any other business, or do or authorize any other matters
or things, which it may consider to be conducive to the welfare of the Union
and the proper conduct of its operations.

23. No publication shall be made in the name of the Union which has not
been directed or authorized by the Congress or the United Board. V; .

24. The United Board shall publish a statement of the receipts artd expend-
itures of the Union since its last meeting, and shall lay before Congress a complete
account of such receipts and expenditures for the year ending the 31st of Decem-
ber, then last.

Sectional Boards

25. Sectional affairs pertaining to the Union shall be administered by a
Sectional Board to which there shall be assigned such sectional districts as the
Congress may direct from time to time, which, subject to such direction, shall

be as follows:

1 . The Maritime Limits — Nova Scotia, New Brunswick and Prince
Edward Island.

2. Central Limits — Ontario and Quebec.

3. North- Western — Manitoba, Saskatchewan and Alberta.

4. Coast British Columbia.

Election of Sectional Boards

26. The delegates elected to Congress shall be, by virtue of their appoint-
ment, members of the Sectional Boards. ^

The Sectional Board

2 7. The members of each section shall regulate for themselves their times
and places of meeting, and shall determine all administrative questions arising
within their respective districts, but shall act in their own name only, and shall be
subject to the regulations from time to time made by the United Board.

28. All members of each section shall, notwithstanding their independent
election, be regarded as officers of the Congress and honorably bound to carry
out any line of policy adopted by it.

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29. The United Board may suspend from the discharge of his duties, or
may remove from office, any member of any Sectional Board who has, by resolu-
tion of the Sectional Board to which he belongs, been adjudged guilty of injurious
conduct. Any member removed from office shall be disqualified for a seat on the
Board for a period of one year.

Services of the Union Profits of the Union

30. The services rendered by the UrJon to its members shall,, so far as its
funds permit, be rendered in consideration of the contributions to be made by them
under its rules, without further charge.

3 1 . The profits of the Union arising out of any surplus of its income from
all sources, after providing for all expenses connected with the conduct of the aaid
business, according to its rules, shall be carried to a reserve fund, which shall be
applicable in such manner as the United Board, subject to any resolution of the
Congress from time to time direct, for the promotion of co-operative action among
the members of the Union or the public generally

1. By means of grants either made to the various sections, or to any
co-operative association or other body connected with any such section,
under such conditions as the Board fixes from time to time;

2. For the establishment or aid of any Society;

3. For promoting the preparation, publication or sale of any work on
co-operative matters;

4. For lectures, meetings, or any other means of propaganda, or any
other operation they may judge expedient for promoting the spre?^ of co-
operation, or of education generally among the members of co-operative
societies, or for advancing or defending the interests of societies lumbers
of the Union;

5. For combined action in connection with any association for the
promotion of co-operation in other countries;

6. For travelling expenses connected with any such action as afore-
said.

It is hereby certified that the foregoing are the rules of The Co-operative
Union of Canada, as adopted at its first Congress, on Saturday, the 6th day of
March, 1909.

SAMUEL CARTER, GEORGE KEEN,

President. General Secretary.

1 1